1. Washington Briefing
Garth Rieman, Director of Housing Advocacy and Strategic Initiatives, NCSHA Jennifer Schwartz, Assistant Director for Tax Policy and Advocacy, NCSHA

2. House GOP Tax Reform Blueprint
Calls for top 20% corporate tax rate
Silent on the Housing Credit and tax-exempt bonds
States that tax reform as proposed “generally will eliminate special-interest deductions and credits in favor of providing lower tax rates.”
Tax writers working to turn the blueprint into legislative language
Overwhelming support for preserving the Credit among W&M Republicans
Housing Bonds remain vulnerable

3. What’s Happening in the Senate?
Not as far along on developing its tax plan
Considering various tax ideas, including Senator Hatch’s corporate integration proposal
No set target for tax rates
More likely to take a bipartisan approach

4. Tax Perspectives from the White House
Released a one-page outline of tax principles in April calling for:
15 percent corporate tax rate
Eliminating special interest tax breaks
Consolidation of individual tax brackets
Doubling standard deduction
Repeal of AMT and Estate Tax
Gearing up for summer listening sessions with business leaders/industry groups
Intends to release a detailed proposal in September.

5. Outstanding Questions
Partisan or bipartisan approach
Deficit neutrality or adding to the deficit
Tax reform or tax cuts
Comprehensive reform or a smaller bite at the apple
Where does infrastructure fit in?
How to handle major obstacles
Entrenched interests
Controversial proposals– Border Adjustment Tax
Challenges with compromising
The clock keeps ticking

6. A Crowded Schedule Budget resolution Appropriations The debt ceiling
Healthcare
Necessary program extensions
Nominations
Tax reform in an election year???

7. The Affordable Housing Credit Improvement Act of 2017 (S. 548/H. R
Comprehensive legislation
Includes all NCSHA’s Housing Credit legislative priorities
Increases resources
Supports preservation
Provides new flexibility
Simplifies program requirements
Facilitates development in challenging markets and for hard- to reach populations

8. Increases Housing Credit Resources
Provides a 50 percent increase in Credit authority phased in over five years and corresponding phased- in 50 percent increase in the small state minimum (Senate bill only)
Establishes a permanent minimum 4 percent Housing Credit rate for acquisition and bond-financed properties
Establishes a state-determined 30 percent basis boost for bond-financed properties

9. Supports the Preservation of Existing Affordable Housing
Provides flexibility around existing tenant income eligibility
Replaces the right of first refusal with a purchase option
Modifies the 10-year rule
Allows states to include relocation expenses in Credit- eligible rehabilitation expenditures
Gives states the authority to ensure that affordability restrictions endure in the case of illegitimate foreclosure

10. Facilitates Development for Hard to Reach Populations and in Challenging Markets
Gives states the flexibility to provide a basis boost of up to 50 percent for units reserved for ELI households
Permits income averaging
Standardizes income eligibility for rural properties
Encourages the development of affordable housing in Native American communities
Repeals the QCT population cap
Raises the DDA population cap

11. Provides New Flexibility/Simplifies Program Requirements and Addresses Fair Housing Concerns
Simplifies the Housing Credit student rule
Gives states the flexibility to determine a reasonable replacement period after a casualty loss
Prohibits states from requiring or providing local approval or local contributions as part of project selection
Clarifies the preference for housing located in a QCT that contributes to a concerted community revitalization plan

12. Other Modifications
Changes the program’s name to the Affordable Housing Tax Credit
In certain circumstances, limits the rent charged on units to the maximum Housing Credit rent, even if a tenant is a Voucher holder and the FMR exceeds the Housing Credit rent
Eliminates the basis reduction associated with certain energy efficiency tax Credits

13. Status of AHCIA Strong bipartisan support
S. 548 has 20 cosponsors (including Cantwell and Hatch)– 11 Democrats, 8 Republicans, and 1 Independent
H.R has 56 cosponsors (including Tiberi and Neal)– 25 Republicans and 31 Democrats
Strong support on the tax writing committees
7 of 26 Finance Committee members on S. 548
24 of 40 Ways and Means Committee members on H.R. 1661
Prime cosponsorship targets: other tax writing committee members, cosponsors of minimum Credit rate legislation
We need a “vehicle” for passage

14. Status of GAO Reports on the Credit
Report on federal oversight– July 2015
Report on state administration– May 2016
Abridged report on the role of syndicators– February 2017
Report on development costs– planned release for Spring of 2018

15. FY 2017 Appropriations $950M for HOME Investment Partnerships program
$10.8B for project-based rental assistance (PBRA), fully funding all contracts
$20.3B for Housing Choice Vouchers
$3B for Community Development Block Grants (CDBG)
Increases the number of public housing units that can convert under the Rental Assistance Demonstration (RAD) program from 185,000 to 225,000 and extends the program to 2020

16. FY 2018 Administration Budget Proposal
Eliminates HOME, CDBG, Trust Fund, Rural Rental Housing, and other programs
Cuts rental assistance funding
Raises tenant rent contribution from 30 to 35 percent of monthly income
Establishes a minimum rent of $50
Ends utility allowance reimbursements
Eliminates the RAD unit cap

17. Budget Process
Budget Committees have not released FY Budget resolutions
Appropriations Committees holding hearings and some markups
Continuing resolution, potentially long-term, very likely

18. Housing Trust Fund
HUD has prepared 2017 allocations for distribution
Allocation plans due by August 16
Administration proposes to eliminate HTF assessments in 2018

19. Housing Finance Reform
Administration, House, and Senate key players committed to pursuing reform
Significant differences in approach seem likely
Senate Banking Committee held hearing in May
House Financial Services Committee Chairman Hensarling says he plans to begin work on housing finance reform soon

20. Washington Briefing
Garth Rieman, Director of Housing Advocacy and Strategic Initiatives, NCSHA Jennifer Schwartz, Assistant Director for Tax Policy and Advocacy, NCSHA